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bixtya
1 month ago
9

A company would like to produce 1000 products per week for 30 weeks. The Direct Material Cost for the raw materials used in the

product is $1.50 per product. After producing 100 products, the company must stop production to replace a filter on the machine (the filter is replaced after producing every 100 products). The filter costs $50.00. What is the Total Cost Per Product
Business
1 answer:
Mariulka [3.8K]1 month ago
4 0

Answer:

$60000

Explanation:

A total of 1000 items are to be manufactured each week for a duration of 30 weeks.

Calculating the total number of products gives us 30 * 1000

= 30000

The filter requires changing after every 100 products, with each filter costing $50.

The total number of filters utilized is

= 30000/100

= 300.

Thus, the cost per product equals $1.5

The overall cost can be determined as

($1.5*30000)+($50*300)

= $45000+$15000

= $60000

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